Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

German economy could continue to shrink: Bundesbank

Economy Aug 19, 2019 06:37AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. The new 100 Euro banknote is presented at the headquarters of Germany's Federal reserve Bundesbank in Frankfurt

FRANKFURT (Reuters) - The German economy could have continued to shrink over the summer as industrial production drops amid a dearth of orders, the Bundesbank said on Monday, suggesting that the euro zone's biggest economy is now in a recession.

German growth contracted in the second quarter on slumping exports as a global trade war, China's own slowdown and Brexit uncertainty sapped confidence, dealing a blow to an export-focused economy.

"Overall economic performance could again decline slightly," the Bundesbank said in a monthly report.

"The main reason for this is the continuing downturn in industry," the central bank said, pointing to a significant decline in orders and a big drop in sentiment indicators for manufacturing firms.

While domestic consumption continues to isolate the economy, the jobs market is already showing signs of weakness and confidence in the services sector is also dropping, the Bundesbank added.

Still, the construction boom is likely to continue, providing some support.

While Germany has so far rejected the idea of boosting public spending to offset the slowdown, Finance Minister Olaf Scholz said that Berlin has the fiscal strength to counter any future economic crisis "with full force".

Speaking on Sunday, Scholz said the global financial crisis in 2008/2009 had cost Germany roughly 50 billion euros and the government could again muster such a sum, if necessary.

Obsessed with running a balanced budget, Germany has produced surpluses for years, ignoring calls for more spending to boost growth.

(This story was republished to remove extraneous first line; sends to additional subscribers)

German economy could continue to shrink: Bundesbank
 

Related Articles

Ireland boosts budget package to fight inflation
Ireland boosts budget package to fight inflation By Reuters - Jul 04, 2022 1

By Padraic Halpin DUBLIN (Reuters) - Ireland can increase its budget package for 2023 to help to fight soaring inflation, the finance ministry said on Monday after forecasting a...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email